Citi bearish on Cummins India
Further, resignation of managing director Sandeep Sinha could weigh on near-term stock performance, said Citi.
The brokerage had downgraded Cummins India to neutral after a weakerthan-expected performance in the March quarter on margin contraction due to export weakness. Export uncertainties are likely to persist through FY20, also reflected in management guidance of flattish to negative sales growth, said Citi. Margins will also get impacted as the share of exports dips, added Citi. However, the domestic business, in which the company enjoys a dominant market position and a high return on capital employed business, continues to remain strong, it added.